After the break, the game is good, and the short-term reversal
The futures index was recently affected by external factors, and it has experienced a sharp decline, falling more than a thousand points for two consecutive days. Under the influence of the US stock market plunging overnight, the index futures opened 547 points in the early part of the market on Wednesday, and the low was seen at 26,724 points. Although it did not create a low level afterwards, it was weak in the whole day and eventually fell 506 points to close at 26,765 points.
The index futures continued yesterday’s decline on Wednesday, opening 271 points lower. Afterwards, the impact of the “Huawei Crisis" re-fermentation, the decline gradually expanded, once plunged 759 points, low 26006 points, although the tail market fell slightly, and finally the whole day still Frustrated 605 points and closed at 26,160 points.
The market’s optimism about the positive news of the Sino-US trade war’s temporary truce quickly dissipated. On Tuesday night, the market was “upside down” due to the US debt suffocation curve, triggering an increase in market concerns about whether the US economy would experience a recession. On the other hand, the United States President Trump also issued a tough remark against China that night, which added a shadow to the progress of the trade war. US stocks plunged nearly 800 points in a single day on Tuesday, thus affecting the atmosphere of the global market.
However, it can be said that “the house leaks in the rain". After the global stock market fell sharply on Wednesday, there were reports yesterday that Huawei’s CFO (the daughter of Huawei founder Ren Zhengfei) was on Saturday, the day of the “Study Conference". Was arrested while transiting in Canada. It was reported that Canada was acting at the request of the United States and was facing extradition to the United States. The allegations were alleged to violate US sanctions against Iran. The Chinese side has also made solemn representations to the United States and Canada. The news has caused the market to worry about the deterioration of Sino-US relations, which has affected the expectations of the Sino-US trade war.
“Huawei Crisis" Affects Hong Kong Stocks
The news after the “Study Conference" was very repetitive. Although China and the United States had published optimistic remarks on the trade war, they never concealed the repeated attitudes and actions of the US. Judging from the arrest of Huawei CFO, the US itself has not had expectations for this meeting before the “Study Conference". Everyone temporarily pays attention to the “Huawei Crisis" and speculates on the future development of the relationship between the two countries. And global stock market trends.
In terms of technology, the futures index fell more than a thousand points in the past two days, and the short-term technical trend of the futures index was reversed. Yesterday, the index futures closed with a large black candlestick. In one fell swoop, it fell below the 20-day and 50-day moving averages. It fell for two consecutive days. If the futures index fell below yesterday’s low of 26,006 and the previous low of 10:00, The index refers to the upswing and is destroyed. After the index, it is necessary to try 25006 points again.
The index’s rising rift on Monday and the falling rift on Wednesday also seem to create a “shadow-shaped" smattering signal. If the futures index fails to recover the Wednesday’s falling rip (26,948 to 27,041) as soon as possible, the futures index can be Confirm that it has peaked at 27326, and the future futures index will be near the top of the former island and near the crack of the island-shaped top, that is, 25000 to 27000 points, and then rise and fall again, and then wait for the next breakthrough; If the index can be used to cover the falling gap on Wednesday, the rebound wave will be able to continue and will advance to the initial target of 28,000 points. Investors who built the monthly Long Call near the 26,700 points on Wednesday, if today’s futures index fell below 26,006 points and the previous low of 10,00, they must first close the stop. Due to the volatility of the temporary market conditions, it is recommended that you do not rush into the market for a while, and wait until the market conditions become clear and then deploy accordingly.